Witnesses from the United States Council for International Business, the Aluminum Association and the International Intellectual Property Alliance say that China is not living up to its World Trade Organization commitments on many fronts, even as there are some signs of movement away from practices that damage foreign competitors.
Mara Lee
Mara Lee, Senior Editor, is a reporter for International Trade Today and its sister publications Export Compliance Daily and Trade Law Daily. She joined the Warren Communications News staff in early 2018, after covering health policy, Midwestern Congressional delegations, and the Connecticut economy, insurance and manufacturing sectors for the Hartford Courant, the nation’s oldest continuously published newspaper (established 1674). Before arriving in Washington D.C. to cover Congress in 2005, she worked in Ohio, where she witnessed fervent presidential campaigning every four years.
U.S. Trade Representative Robert Lighthizer fired back at critics who say the auto rules of origin will make North American cars less competitive for export beyond the NAFTA countries and that the labor-friendly changes to the pact will not be enough to garner substantial Democratic votes. Lighthizer, who was speaking on Laura Ingraham's political talk radio show on Oct. 2, said: "The people who say we shouldn't have renegotiated this thing are just engaging in self-deception. We were witnessing literally the loss of our automobile industry, parts and companies to Mexico and other places."
A bill that would require advance data from all international mail by 2020 -- designed to help CBP interdict small-scale fentanyl and carfentanil shipments, particularly from China -- is headed to the president's desk after the Senate voted 98-1 on Oct. 3 to approve the conference report of a package of bills that attacked the opioid epidemic from many angles.
Closing a trade deal with Canada and Mexico with the threat of tariffs on the auto sector has emboldened President Donald Trump for his battle with China, said Edward Alden, a senior fellow at the Council on Foreign Relations. "I think the most interesting thing that Donald Trump said in his press conference yesterday is that he made it very clear that he sees the tariffs he put in place as negotiating leverage," Alden said on a conference call with reporters Oct. 2.
The scaling back of the investor-state dispute system, a wage component to rules of origin and a more enforceable labor and environmental standard all address Democrats' complaints that free trade erodes American workers' wages and jobs and privileges corporations over citizens, said Edward Alden, a senior fellow at the Council on Foreign Relations. "The politics of this are sort of fascinating here," he said of the new U.S.-Mexico-Canada Agreement.
The U.S.-Mexico-Canada Agreement is not a rewritten NAFTA, President Donald Trump said Oct. 1. Instead, "This one is a brand new deal," he said during a White House event. Lawyers who have begun reading the text say the treaty builds on the Trans-Pacific Partnership and the original NAFTA, while including some important new provisions. Mark Warner, a Canadian-U.S. trade lawyer, said that while Trump's speech was full of puffery, "the auto stuff is significant. I don’t think anyone should say it’s not significant."
Canada and the U.S. reached a deal on NAFTA 2.0 late Sept. 30, which was announced a half hour before the deadline to release the text.
As effusive as President Donald Trump was about the significance of his NAFTA rewrite, he was cautious about its chances of getting through Congress next year. Polls suggest Democrats could retake the majority in the House of Representatives, and there is a significant number of Democrats voted against the original NAFTA, or who pledged to vote against the Trans-Pacific Partnership. The earliest a vote could come, because of timelines laid out in fast track, would be in February. But it's likely to be later, since that doesn't include the time needed for Congress to draft implementing legislation.
Democrats will be crucial to ratifying a new NAFTA if House Republicans lose the majority in November, whether the deal includes Canada or not. U.S. Trade Representative Robert Lighthizer has said repeatedly that he expects significant numbers of Democrats to support the new NAFTA. Changes he won from Mexico should be good for domestic manufacturing, he believes, between bringing labor provisions into the body of the agreement and changing auto rules of origin to encourage manufacturing in the U.S. (and Canada, if it decides to join the deal).
Customs officials in the European Union seized more than 31 million counterfeit products during 2017 with a street value of more than 580 million Euros, the EU said in a Sept. 28 press release. The volume of interdicted goods is down since 2016, but the government noted that "potentially dangerous goods" such as medicines, toys and electrical goods used day-to-day by consumers are now 43 percent of the total, a much higher proportion than in the past.